Citi Stock Undervalued

Citigroup trades at a steep discount to its peers, but deserves a higher price. Why shares could rise 32%.

When contemplating the metamorphosis of America's banks since the financial crisis, think of Citigroup as the late bloomer.

With its tentacles in roughly 160 countries, Citigroup (ticker: C) has more exposure to global economic malaise than its domestic competitors. Mix in weakness in its U.S. mortgage business and fixed-income trading, and you have a recipe for last week's third-quarter earnings report, which came in below analysts'...